One of the advantage of the venmo credit card is the cash back reward, I’d want to go on and on about the benefits of the Venmo credit card, but that’s not the point of this article; instead, I’ll tell you, what credit score is required to get the Venmo credit card and how to increase your credit score. So buckle up as we dive right in.
What Is a Credit Score?
A credit score is a numerical expression that ranges from 300 to 850, it is a model that determines your creditworthiness and the possibility you’ll pay on time. Despite the fact that there are numerous credit bureaus, many lenders choose the Fair Isaac Corporation’s (FICO) method of scoring; the following table breaks down the FICO score range:
300 – 579 = Poor
580 – 669 = Fair
670 – 739 = Good
740 – 799 = Very Good
800 – 850 = Exceptional
What is the Venmo credit score requirement?
To be eligible for a Venmo credit card, you must have a credit score that ranges from good to exceptional. FICO’s credit score range, however, states that you need a score of between 690 and 850.
Why Does A Good Credit Score Matter?
Your credit score is one of the most important measures of your financial health; a lender predicts your credit worthiness at a first glance, the better your score, the higher your chance of approval. A high score opens the door to low interest rates and gives you a better rate on mortgage, auto loans and every other thing that involves finance. In addition, with an excellent score, you’re considered a low-risk borrower, while a poor score affects your ability to get life insurance because your credit score affects your insurance score.
Factors That Determines Your Credit Score
To enhance your credit score, you must first understand the factors that influence it.
Amount of Owed Balance (35%): Using this, you determine how much of your credit is being used. Your credit score will be in better shape if you have a lot of credit available but only use a small portion of it. However, even if you pay the balance in full each month, having little credit available and using it all negatively impacts your score.
Payment History (35%): This element has to do with how long it takes you to pay off your credit card debt and how on-time you make your payments. The best thing you can do for your credit score is to always pay your bills on time and in full because late payments will always reduce it.
Length of Credit History (15%): The longer your credit account has been open, the better it is for your credit score; for this reason, it is not advisable to close an old credit account. A long history of credit guarantees a better score, however, this doesn’t guarantee a better score for anyone with a poor credit history. Additionally, a person with a short history of credit but a strong credit history can have a great score
Credit Mix (10%): This refers to having a range of credit sources, including vehicle loans and mortgages in addition to credit cards. Having a variety of credits to your name demonstrates your credit-management responsibility. But rushing out to get additional credit cards and multiple lines of credit is a horrible idea. On the following one, I will discuss why.
New Credits (5%): The other smaller components of your credit score, in addition to credit mix, are made up of new credits. As I previously stated, opening numerous credit lines or new credit cards at once is a bad idea. Here’s why: every time you apply for a new credit line, the issuer will always check your credit report. This process is known as a “hard inquiry,” and if there are too many hard inquiries on your account in a short period of time, your credit score will be affected.
How to Improve Your Credit Score?
Paying Down Your Revolving Credit Balance: Paying down your revolving debt can have a big impact on your credit score, so if you have the money, pay more than the minimum payment each month, to keep your credit utilization low. Pay Your Bills on Time: Due to the fact that late payments are known to remain on your credit record for approximately 7 ½ years, they will always have a negative impact on your credit score. Therefore, no matter what method is employed to raise your score, if you do not establish a practice of paying your bills on time and in full, your score will always be low.
Conclusion
It takes some preparation to be authorized for a Venmo Credit Card. Most credit card offers call for exceptionally good credit, and knowing your credit ratings and what report is on your credit record is important when applying for new credit.
